Ethyl alcohol market in Eastern Africa

Earlier Report Observations

The ethyl alcohol market in Eastern Africa began the period at 100.1 million liters in 2018, a year when global trends favoring fuel ethanol blending supported demand. However, the market volume contracted to 80.6 million liters in 2019. A sharp decline followed in 2020, with the market size falling to 49.8 million liters. This drop coincided with Kenya's introduction of revised excise duty rates on spirits and spirituous beverages, including undenatured ethyl alcohol, effective from June 30, 2020, which increased costs and likely dampened consumption.

From 2021 onward, the market entered a phase of robust expansion. Volume recovered to 67.9 million liters in 2021 and then surged to 112.9 million liters in 2022, a growth supported by a significant rise in imports to 111.9 million liters. The upward trend continued in 2023, with the market reaching 148.8 million liters, driven by both strong imports of 134.2 million liters and a notable increase in domestic production to 61.5 million liters.

Production ethyl alcohol in Eastern Africa

In kind, 2017-2020, K l

Top producers of ethyl alcohol, 2017-2020

World map of production of ethyl alcohol, 2017-2020

Ethyl alcohol production in Eastern Africa has declined for the second year in a row. In 2020, the region produced 31 125 thousand liters, marking a 4.9% decrease from the previous year. Looking at the period from 2017 to 2020, production fell by 14.4%, with an average annual decline of 5.1%. The highest production level was recorded in 2018 at 36 604 thousand liters. The most significant drop occurred in 2019, with a 10.6% decrease, while the largest increase was seen in 2018 at 0.6%.

Annual dynamics of production in Eastern Africa in kind, 2017-2020, K l

Exports ethyl alcohol from Eastern Africa

Exports in kind, M l

Following two years of growth, Eastern Africa's ethyl alcohol exports experienced a decline. In 2020, exports totaled 44.3 million liters, showing a modest 9.7% decrease compared to the year before. Over the 2017-2020 period, exports overall increased by 17%, with an average annual growth rate of 5.4%. The peak export volume was in 2019 at 49.1 million liters, which also saw the largest increase of 16.0%.

Annual dynamics of product's exports from Eastern Africa in kind, 2017-2020, M l

From 2017 to 2020, the primary buyers of ethyl alcohol from Eastern Africa were South Africa, accounting for 16.5% of exports in volume, the Democratic Republic of the Congo at 15.3%, and Belgium at 0.9%. Together, these three countries represented 32.6% of total export volumes.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Eastern Africa in kind, 2017-2020

Exports in value, K $ US

In 2020, Eastern Africa exported ethyl alcohol worth 38 969 thousand US dollars, reflecting a significant 31.8% increase year-over-year. Over the 2017-2020 span, export value rose by 23.3%, with an average annual growth of 7.2%. The lowest value was recorded in 2019 at 29 568 thousand US dollars, which also saw the largest decline of 6.7%.

Annual dynamics of product's exports from Eastern Africa in value, 2017-2020, K $ US

During 2017-2020, the main markets for Eastern Africa's ethyl alcohol exports in value terms were South Africa with 13.7%, the Democratic Republic of the Congo at 11.1%, and Angola at 0.9%. This group collectively accounted for 25.6% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Eastern Africa in value, 2017-2020

Imports ethyl alcohol to Eastern Africa

Imports in kind, M l

Ethyl alcohol imports into Eastern Africa have fallen for the third consecutive year. In 2020, imports amounted to 63.0 million liters, representing a sharp 35.1% drop from the previous year. Between 2017 and 2020, imports decreased by 86.5%, equating to an average annual decline of 48.8%.

Annual dynamics of product's imports to Eastern Africa in kind, 2017-2020, M l

Throughout 2017-2020, the key sources for ethyl alcohol imports into Eastern Africa in volume terms were South Africa, which made up 49.6% of imports, Sri Lanka at 10.9%, and Eswatini at 9.8%. Together, these three partners accounted for 70.3% of total import volumes.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Eastern Africa in kind, 2017-2020

Imports in value, K $ US

Ethyl alcohol import value in Eastern Africa declined for the second year in a row. In 2020, imports totaled 97 770 thousand US dollars, showing a 2.2% contraction from the previous year. Over the 2017-2020 period, import value decreased by 28.2%, with an average annual decline of 10.5%. The highest value was recorded in 2018 at 97 770 thousand US dollars, which also saw the largest increase of 8.5%, while the most significant drop occurred in 2019 at 32.4%.

Annual dynamics of product's imports to Eastern Africa in value, 2017-2020, K $ US

From 2017 to 2020, the main sources for ethyl alcohol imports into Eastern Africa in value terms were South Africa with 26.3%, Eswatini at 21.7%, and India at 10.6%. These three countries together represented 58.6% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Eastern Africa in value, 2017-2020